Nifty made a pause to the current correction and 5900 is likely to hold till this expiry and the broader range can be 5900-6200 in the current series. If we look at the weekly charts of midcap and small cap indices both of them are still making lower tops in the weekly charts and the resistance zones have not been breached. Thus it might take some more time to see the real momentum on the upside. Nifty might have done with the 5 wave correction on the downside and ready to move in an ABC pattern on the upside. Thus consider this as a bounce back of the recent correction and i expect the rally to continue till 6100-6120 zone. It might be difficult to get into 6200+ zone in the current series.Asian and US markets have undergone through a healthy correction which nifty didn't but most of the stocks did. As long as the auto sector is under performing the weakness can persist and the demand in auto sales numbers could boost markets all over the world. One reason for the pull back can be bank nifty has completed a retracement close to 61.8% retracement of the entire run up and nifty has completed its time wise correction (see the attached chart). It is always better to look for divergences in sector wise indices than depending upon individual indicators. As bank nifty might have done with the downside there can be more upside in nifty too as there is some thing to lead from the front. For more updates visit https://www.facebook.com/Vinuniftytrends
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